True Statements about Ask Price

A

The correct answer is A: It is the price at which a broker is willing to sell a certain security.

The ask price, also known as the offer price or selling price, is the price at which a broker or market maker is willing to sell a security, such as a stock or bond. This is the price at which an investor can buy the security from the broker or market maker.

The ask price is typically shown in financial quotes alongside the bid price, which is the price at which the broker or market maker is willing to buy the security. The difference between the bid price and the ask price is called the bid-ask spread, which represents the profit margin for the broker or market maker.

When an investor wants to buy a security, they will typically pay the ask price. Conversely, when an investor wants to sell a security, they will receive the bid price. Therefore, an investor who wants to buy a security will pay a higher price than the investor who wants to sell the same security, due to the bid-ask spread.

It's important to note that the ask price can change frequently throughout the day, based on market demand and supply. As a result, investors should always check the current ask price before placing an order to buy a security.